Hedge fund billionaire Daniel Loeb reshuffled his stake in the semiconductor industry at Third Point LLC in the fourth quarter of FY25.

As of Dec. 31, 2025, Loeb sharply reduced Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) from about 1.1 million shares to 425,000 shares.

Meanwhile, he raised his stake in NVIDIA Corporation (NASDAQ:NVDA) to 2.95 million in the quarter, up from 2.85 million.

NVDA: Strong Earnings Beat & AI Investments

NVDA: Technical Analysis & ETF Exposure

Nvidia is trading 0.4% below its 20-day SMA and 0.9% below its 100-day SMA, showing the stock is still working through short-term overhead supply even as the longer-term trend holds with price 3.8% above the 200-day SMA. Shares are up 54.10% over the past 12 months, and the stock is positioned closer to its 52-week high than its low.

Nvidia has demonstrated remarkable performance over the past year, outshining its peers in the semiconductors and related devices sector with a year-over-year increase of +54.10%. This impressive growth significantly surpasses the sector’s peer group average growth of +29.73%.

Top ETF Exposure

  • Amplify CWP Growth & Income ETF (NYSE:QDVO): 9.73% Weight
  • REX AI Equity Premium Income ETF (NASDAQ:AIPI): 9.97% Weight
  • Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (NYSE:USNZ): 9.58% Weight

TSM: Optimizing Capital Allocation, Joins $2B Club

  • Taiwan Semiconductor reported quarterly net sales of $33.73 billion (1.05 trillion New Taiwanese dollars) topping the analyst consensus estimate of $33.27 billion. Net sales grew 5.7% quarter-over-quarter (Q/Q).
  • It guided first-quarter 2026 revenue of $34.60 billion to $35.80 billion, versus the $32.52 billion analyst consensus estimate. It expects a gross margin of 63% to 65% and operating profit margins of 54% to 56%.
  • It is planning significant capital expenditures of $52-$56 billion in 2026, with 70-80% allocated to advanced technologies.
  • The company is expanding capacity at home and in Arizona because it sees AI as a multi-year growth engine.
  • Taiwan Semiconductor is moving to structurally rebalance its mature-node manufacturing footprint as part of a broader effort to optimize capital allocation and manufacturing efficiency. The company expects to reduce Fab14's 12-inch mature-node capacity by 15%–20% by 2028.
  • The company intends to produce wafers using its 3-nanometer process at a plant in Kumamoto prefecture, which experts described as a way to diversify output amid geopolitical pressure.
  • February sales rose 22%, which was a significant slowdown from the growth recorded in January 2026.
  • The company's market value climbed to $2 trillion for the first time in February 2026.
  • TSM plans to hire about 8,000 employees this year to support its expansion and will offer an average annual salary of 2.2 million New Taiwanese dollars ($69,449) to newly recruited engineers with a master’s degree.

TSM: Technical Analysis & ETF Exposure

TSM is trading 5.5% below its 20-day simple moving average (SMA), but 7.0% above its 100-day SMA, which keeps the longer-term uptrend intact even as the near-term trend cools.

Shares are up 93.63% over the past 12 months and are positioned closer to their 52-week highs than lows within the $134.25 to $390.20 range.

Top ETF Exposure

  • Invesco FTSE RAFI Emerging Markets ETF (NYSE:PXH): 6.23% Weight
  • Dan IVES Wedbush AI Revolution ETF (NYSE:IVES): 5.81% Weight
  • Harbor International Compounders ETF (NYSE:OSEA): 6.88% Weight

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